Backers of tax cut on gold coin sales bring in Ron Paul – KTAR.com

PHOENIX Backers of a proposal exempting the sale of U.S. gold coins from state capital gains taxes brought in former congressman and presidential candidate Ron Paul on Wednesday to tout their effort at the state Senate.

The Republican testified before the Senate Finance Committee that the measure takes an important step by not taxing money.

What youre doing here, the way I understand it, is maybe we ought not to tax money, Paul said. And I think thats a good idea. Id like to not tax a lot of things, but certainly it makes no sense to tax money.

Rep. Mark Finchems House Bill 2014 is the latest effort to exempt gold coins from taxation. The Oro Valley Republican argues that taxing exchanges of legal tender like gold coins is a tax on money alone and also is essentially a tax on inflation.

Paul got pushback from Sen. Steve Farley, D-Tucson, who called the effort a way to give tax breaks to speculators and gold coin dealers.

Im trying to wrap my mind around how this isnt just another tax giveaway to coin collectors, Farley said. I get your point that you dont tax money when exchanged money for money. And I would buy that, if the $20 gold piece from 1850 was going to be traded for a $20 bill.

Instead, he noted, the price on coins is based on how much precious metal they contain and condition, not face value.

Similar efforts have earned two vetoes from Gov. Doug Ducey and one from former Gov. Jan Brewer in recent years. Ducey cited unintended consequences, while Brewer cited potential lost state revenue and a special tax break for coin dealers.

Finchems latest measure has already passed the House and was approved on a party-line 4-3 vote in the Senate Finance Committee on Wednesday. It now heads to the full Senate for consideration.

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Backers of tax cut on gold coin sales bring in Ron Paul - KTAR.com